Can someone help me figure out the self-employment tax % for the state of Indiana? I'm working as a 1099.

[m-paigekelly]

I've been using QuickBooks self-employed to track my federal income/federal tax obligations but there is no way to calculate the self-employment tax I'll be paying in my state, Indiana. I'm hoping someone can help give a quick rundown of the % of my income I should be saving toward Indiana self-employment taxes. Thanks.

[Hal_Al]

The self employed have to pay both the employer and employee share of FICA (social security & Medicare) tax. This is known as self employment tax (SET) and is in addition to income tax.

SET is only a federal tax.  There is no state SET.  SET is not a "business tax".  It is only how the self employed go about paying FICA, since there is no employer to withhold it from your earned income (wages). 

For state income tax, the self employed pay at the same income tax rates as wage earners and other state tax filers.

Residents of Indiana are taxed at a flat state income rate of 3.23%. That means no matter how much you make, you're taxed at the same rate. All counties in Indiana impose their own local income tax rates in addition to the state rate that everyone must pay. Indiana counties' local tax rates range from 0.50% to 2.90%.

For a list of county rates, see https://smartasset.com/taxes/indiana-paycheck-calculator#:~:text=Residents%20of%20Indiana%20are%20ta....

[VolvoGirl]

For Federal Self Employment Tax......

Self Employment tax (Scheduled SE) is automatically generated if a person has $400 or more of net profit from self-employment. You pay 15.3% SE tax on 92.35% of your Net Profit (If it is greater than $400). The 15.3% self employed SE Tax is to pay both the employer part and employee part of Social Security and Medicare (FICA). So you get social security credit for it when you retire.

The SE tax is already included in your tax due or reduced your refund. It is on the 1040 Schedule 2 line 4 which goes to 1040 line 23. The SE tax is in addition to your regular income tax on the net profit.

You do get to take off the 50% ER portion of the SE tax as an adjustment on 1040. It will be on Schedule 1 line 14 which goes to 1040 line 10a. And subtract the QBI Adjustment on 1040 line 13.

For 2020 the max for Social Security is $8,537.40 on $137,700 of wages.

You are paying 15.3% for…..
SS for employer 6.2%
SS for employee 6.2%
Medicare for employer 1.45%
Medicare for employee 1.45%

[Hal_Al]

Above answer revised